Mayor invests an unprecedented £88.6m to train London’s next generation of construction workers and boost housebuilding

• Major £88.6m investment will deliver more than 20,000 construction courses, alongside industry placements, helping Londoners into good jobs and tackling critical skills shortages.

• Landmark funding will boost construction training across the capital and invest in state-of-the-art facilities and equipment.

• New programme includes £3.2m to launch three new pan-London Sector Hubs to connect employers with London's skills system.

The Mayor of London, Sadiq Khan, has today announced an £88.6m investment to train London’s next generation of construction workers, helping to tackle skills shortages, accelerate the delivery of new homes and make existing homes more energy efficient.

The new construction skills package, funded by the Department for Education (DfE), will deliver more than 20,000 construction courses, alongside industry placements, while investing in high-quality training facilities and equipment at colleges across the capital.

It comes as the Mayor works to accelerate housebuilding across the capital as set out in his draft London Plan, published earlier this month. The plan is a blueprint for how he will deliver the homes Londoners need and maximise affordable housing.

London faces an unprecedented challenge to deliver a significant number of new homes with the draft London Plan setting out plans for as many as 558,000 new homes by 2037.  At the same time, we face one of the most difficult development markets in recent memory, with higher construction costs, increased borrowing costs and significant viability pressures creating the toughest conditions for building homes since the 2008 global financial crisis.

Alongside this, London’s construction industry currently faces severe structural labour shortages, with high demand consistently outpacing the available pool of experienced talent. The most critical gaps are heavily concentrated in skilled trades such as bricklaying and carpentry, plumbing and electrical installation, and technical project management. There is also growing demand for green skills, like retrofitting and heat pump installation. The Construction Industry Training Board (CITB) estimates that Greater London requires approximately 26,500 additional construction workers over a five-year period to service ongoing housing, commercial, and infrastructure demands.

This new investment follows on from the launch of  London’s Inclusive Talent Strategy last year, which is putting employers at the heart of London's skills system so training better reflects the needs of businesses and London's economy.

The £88.6m package will see:

1. Up to £43m invested in Further Education (FE) colleges to support new or improved training facilities and equipment. This will boost the capacity, quality, and industry-relevance of training shaped through employer partnerships.
2. A £2.5m fund to test and scale training provision, co- designed with members of the Interim Construction and Built Environment Talent Board.
3. Over 2,700 industry teaching days delivered to learners by construction professionals, as part of the Further Education Teacher Industry Exchange. To help training keep up with rapidly changing needs of the sector and ensure business can build a talent pipeline with the correct skills and experience.

Appointed by the government as vital strategic partners, New City College (Construction) and South Bank Colleges (Clean Energy) will drive London’s Construction Skills Package. They will lead the capital's training provider network to boost training quality and coordinate technical education.

Together, they will work with London's network of construction and built-environment training providers and employers to strengthen technical training and ensure Londoners are gaining the skills businesses need.

Alongside the Construction Skills Package, the Mayor is today launching three new, virtual, Pan-London Sector Hubs covering the Built Environment, Creative Industries and Life Sciences, backed by a further £3.2m investment from GLA core funding.

The hubs will make it easier for employers to engage with London's skills and training system, connecting businesses with training providers and helping ensure courses and career pathways respond to the changing needs of some of London's key growth industries.

Mayor of London, Sadiq Khan, said: "We can’t build the homes Londoners desperately need without the skilled workforce to deliver them. That's why I'm investing an unprecedented £88.6m to train London's next generation of construction workers, helping thousands of Londoners develop the skills they need to access good jobs while tackling critical skills shortages across the industry.

“This landmark investment will deliver more than 20,000 construction courses, alongside industry placements and major investment in our colleges, ensuring London has the skilled workforce needed to build more homes and make existing homes more energy efficient.

“By bringing employers and training providers together, we can give Londoners clearer routes into good careers while giving businesses the talent they need to grow – helping us to build a greener and more prosperous London for everyone.”

Anna Devlet, Chair of the Interim Built Environment Talent Board and Strategic Advisor on Social Value & Skills at The Crown Estate, said: “The investment announced today will unlock thousands of opportunities in our industry and ensure we have the talent we need to meet housing and infrastructure demand across the city.

“As chair of the interim Built Environment Talent Board I, along with other industry leaders, have worked closely with the GLA to shape this package of support. From bringing business into the classroom through the FE Teacher Industry Exchange,  to industry placements for young people, the Construction Skills Package is developing the skilled workforce London needs.

“As the interim Board transitions to become a permanent Board, we look forward to continuing to champion this work strengthening the skills pipeline, creating stronger links between employers and providing opportunities for young people.”

Craig Hanlon-Smith, Principal at South Bank Colleges said: “This additional investment is good news for London’s further education sector and our learners. As a training provider, our partnerships with employers are central to the types of courses we develop and deliver. Training needs to keep pace with evolving construction standards and the changing skills needs across the built environment sector. Our learners need the latest theory and practice so they’re job-ready by the end of the course.

“As one of London’s Technical Excellence Colleges, leading on Clean Energy, the funding has allowed us to bring in expertise from industry. This gives our tutors the latest knowledge and skills on building physics and low carbon construction. This is an area where we see future growth in demand; we need to have the teaching workforce to deliver the training that employers need and which will support Londoners into good job opportunities.

“And it has given our learners real insight into the types of careers available in the sector and get on-site experience, developing the range of skills you need when in a job.”

Badmos Kuti, learner at London South Bank, said: “The Industry Placement I completed with HG Construction was amazing. Thank you to everyone involved, especially the Social Value team and the Head of Social Value.

“It showed me how what I’ve learned in college translates into the real working world. It gave me valuable insight into the construction industry and the opportunity to learn from experienced professionals, ask questions, and gain a better understanding of what it’s like to work in the sector.

“It has made me even more confident that I’ve chosen the right career in the built environment, and I can’t wait to start working professionally.

“I would also like to say a huge thank you to HG Construction for giving me another opportunity to complete further work experience in the trade I would like to start my apprenticeship in, which is electrical installation. I’m really grateful for the opportunity and excited to continue learning and developing my skills.”

Andy George, Director of Industry Attraction and Skills at the Home Builders Federation, said: “Today’s announcement is positive news for the home building industry’s future workforce. Colleges, learner placements and strong employer-education partnerships will be critical to scaling up housing output to meet the Mayor’s ambitions.

“Through the Home Building Skills Partnership, industry is already working closely with colleges and training providers to give young people practical, work-ready skills, including through our Partner a College programme and NHBC Training Hubs.

“However, these young people will need homes to build and move into, and London’s housing pipeline has dried up, with home building investment at alarmingly low levels. Today's commitment to growing the workforce is encouraging, and we look forward to working with the Mayor and central Government to remove the barriers making it harder to build and buy in the capital.”

John Dickie, Chief Executive of BusinessLDN, said: “Skills shortages are driving up the cost of building in London and it’s vital that we train up more people with the skills to build the homes and infrastructure that London needs. This investment from the Mayor will give London’s FE colleges the resources to provide this training and make it easier for employers to engage with the capital’s skills system, so that we can have effective, co-designed schemes.”